Govt Mulling Compensation To Replace Cash Handouts

Balikpapan, E Kalimantan, April 15 (Antara) - The government is drafting a policy to compensate the poor when the dual prices of subsidized fuels are applied, Coordinating Minister for People`s Welfare Agung Laksono said. The compensation would be given to the middle-and lower-class people although the fuel price adjustment will affect the middle-and upper class communities, he said here on Sunday. Potential inflation is one of the main reasons behind the compensation, he said. "What is clear it will be different from BLT (cash handouts) we provided in the previous years. It will be a program to better alleviate the financial burden of the people," he said. The provision of cash handouts would only give a negative stigma to the government although they were aimed at helping the poor, he said. But he stopped short of revealing how the compensation would like. The people`s empowerment program was one of the alternatives used for the compensation policy. In addition, the improvement of infrastructure would also become one of the priorities in the use of budget funds saved from the program, he said. He said the government could not spontaneously scrap fuel subsidies as proposed by many parties in light of different levels of the people`s conditions. Therefore, the government opted to reduce subsidies for those who had private cars, he said. "It is likely the subsidies for the haves will be phased out and that only economic prices will be used," he said.